Input Output CEO says Tether counters crypto ideals

In a recent “Ask-Me-Anything” segment, Input Output Global Chief Executive Officer Charles Hoskinson said Tether counters cryptocurrency ideals as it relies on faith rather than on impartial systems.

The Cardano development arm’s CEO also added that as much as regulation looks bad, there will be no checks on companies who make particular claims without it.

With this, along with the fact that USDT liquidity supports important bounds of the cryptocurrency markets, experts couldn’t avoid asking and eventually speculating if the Tether controversy is a ticking time bomb that is just waiting to go off.

The tether controversy

Earlier this year, tether’s parent company Bitfinex entered into a settlement with the New York Attorney General to the hefty tune of $18.5 million.

This allowed the company to avoid the allegations that it covered up losing $850 million in customer funds held by a payment processor as well as further investigations into tether’s reserves.

Based on the terms of the settlement, both Tether and Bitfinex will admit no wrongdoing but will need to provide quarterly reports that describe the former’s reserve composition for the next two years.

Following this, there were some who claimed Tether’s reserves are not sufficient to match the USDT that are already in circulation. However, Bitfinex CTO Paolo Ardonio assured that the asset is 100% backed and their company is working extensively to improve transparency.

Hoskinson speaks on the controversy

In attempting to focus on the issues that surround Tether reserves, the Input Output Global big boss questioned whether such an industry player should be operating in the gray area it currently is into.

“You have to understand that the only reason that Tether is worth something is that a centralized company asserts that every unit that has been issued is linked to an equivalent value of dollar,” he said.

 

Image courtesy of Cointelegraph News/YouTube

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